Oliver Kazunga Senior Business Reporter
THE Zimbabwe Commercial Farmers’ Union (ZCFU) and the Grain Millers’ Association of Zimbabwe have entered into an agreement that will see the millers buying 90,000 tonnes of wheat from the farmers in the next marketing season.

The agreement was reached two weeks ago as the farmers, who used to deliver their wheat to the Grain Marketing Board (GMB), noted delays in payment by the national granary.

In the past, GMB has not been able to pay the farmers on time due to funding challenges resulting in disruptions of farming operations.

“We’ve agreed with the Grain Millers Association of Zimbabwe (GMAZ) that the millers will buy 90,000 tonnes of wheat from our members in the next selling season. We’re happy to have sealed that deal with the millers because at least we’ve got a market for our crop.

“We used to deliver to GMB but due to funding challenges it continues to face, we can’t continue delivering the crop as we’ll not be paid on time,” said the ZCFU president Wonder Chabikwa.

“The price at which the millers will buy our wheat ranges from $340 and $420 per tonne. The price isn’t good as it doesn’t allow us to break-even considering our cost of production.”

GMB was buying wheat at $466 a tonne but farmers demand a wheat producer price above $500 to remain viable.

GMAZ chairman Tafadzwa Musarara could not be reached for comment as his mobile phone was not being answered.

Due to high production costs from “expensive” electricity as high as $0,166 per kilowatt hour, local wheat producers are uncompetitive compared to their regional counterparts in countries such as Zambia who are producing wheat at $0,004 Kw/h.

Chabikwa said their members were spending $2,600 per hectare on wheat, a situation that put them on the receiving end in light of the wheat imports that were landing at $350 a tonne.

Wheat production in Zimbabwe has in recent years continued to decline as the producers are subjected to challenges such as funding, cheap imports, high tariffs on electricity and water supplies.

In 2009 Zimbabwe put 60,000 ha under winter wheat compared to 6,000 ha last year.

About 2,600 ha have so far been put under winter wheat this season although some farmers were still planting the crop two weeks after the May 15 planting deadline.

The country requires between 200,000 tonnes and 350,000 tonnes of wheat annually.